How Did We Get Here? The Salem, MO Electric Meter Debacle

eight electrical metric meters
Photo by Tim Mossholder on Pexels.com

Originally published March 11th, 2020. Reprinted with Permission.

See Original Post Here

 

The following is an in-depth timeline of Salem’s utility billing debacle and the deception of the public that has taken place. All of my statements here are taken directly from Salem News articles from the past 2 years regarding this topic. This post took multiple hours of research and almost 50 pages of notes. I wanted citizens of Salem who have been affected by the utility crisis to be able to view all of the city’s statements and claims within one post. Though it may be lengthy, I have provided the most in-depth breakdown that I could. I ask that you review each article included, as my commentary is only a fraction of what these articles contain. From this post, you will only gather the highlights from each article.

 

August 13th, 2019

 

The topic of upgrading electric and water meters in Salem city limits is first mentioned. City Administrator Ray Walden prefaces the conversation by bragging about lowering electric rates for citizens.

 

He states that electric rates have fallen 8.7%, and tells citizens to expect even more savings as new AMI electric meters begin being installed in September of 2019.

After this initial mention of the meters was made, there was practically radio silence about the project as they were being installed.

 

See article:

https://www.thesalemnewsonline.com/…/article_04cc5ed2…

 

December 14th, 2019

 

Walden states that utility billing is running a couple weeks late. This delay was caused by a one-time need to enter data manually. This statement claims that data would only need to be entered once by hand, and that the system will take over after the initial entry.

Bills for this period were delayed until January 20th, 2020. Walden stated that once installation was completed, billing would return to normal monthly cycles.

 

See article:

https://www.thesalemnewsonline.com/…/article_c9d98808…

 

December 17th, 2019

 

This article opens by reiterating the issues outlined in the last article. However, the tone in this article shifts; Ray Walden makes a bold statement, saying that once the new meters are in place, this will never happen again.

As citizens of Salem well know at this point, this is simply not true. This is also the first of many bold statements from Walden that should be held accountable.

Installation was announced to begin in Sept. 2019 (see Aug 13th article) and we are now nearing the end of December. The article states that 1,053 had been installed, and they projected to finish at the end of January or early February. A statement from Public Works Director Mark Nash said everything was going to plan.

The article wraps up by explaining that the city paid $1,340,000 for the project, including installation. This confuses me, because if they paid the company for installation, why are city employees installing the meters?

 

See article:

https://www.thesalemnewsonline.com/…/article_5c42ffda…

 

February 25th, 2020

 

February 25th was an eventful day in the unfolding of this story. I have multiple pages of notes spanning 2 articles from this day.

The article begins with the announcement that no utility bills at all were issued in the entire month of January. Meanwhile, bills issued in February stated that they were for October/November 2019. City Clerk Mary Happel brushes this off as a software issue, and states that there is no way to alter the dates. Walden makes the claim that as soon as the meters are installed, this issue will be resolved.

Walden follows with the statement that March will return to a regular monthly billing cycle. AS time progresses, this clearly is false and problems only worsen.

 

Alderman Kenneth Nash cites rising tensions from citizens in his district, and states that they are more hostile over this than anything in the last 10 years. Alderwoman Kim Steelman also voices concerns of hostility. This is the first negative reaction from the public that is documented, and foreshadows the tensions in the coming months.

 

Ray Walden states that at this point, billing is 2 ½ months behind, which would mean that billing for a November period would in fact be accurate, despite Ray and Mary’s claims of that being incorrect earlier in the article. Ray follows this statement by promising that the city will work to spread out the billing backlog over upcoming bills so no one gets trampled with payments. Ray states that upcoming weather will decide how that billing will play out.

 

Alderwoman Hinderlighter requests that late fees be temporarily terminated, and Ray Walden denies this request. It is worth noting that later in 2020 those fees were terminated, but due to COVID-19. The city would not relax these fees for struggling citizens until COVID forced them to do so.

 

Kenneth Nash brings up communication issues that the city was facing. Ray Walden claims the city has done their part in portraying information, but states that they are open to suggestions to better the communication lapse.

 

Alderman Kevin James also expresses concern regarding reiteration of utility information from the city to its citizens, and requests that printed notices be distributed to explain the issues and address concerns. Walden dismisses the misinformation, blaming citizens for spreading false information.

 

Ray finishes by making the statement that billing for the month of March would be ‘timely.’

See article:

https://www.thesalemnewsonline.com/…/article_e541dcc0…

Alderman Kenneth Nash asks if the utility department will be in a spot to eradicate positions after the new meters are installed. Mark Nash denies, saying that workers will be able to do their actual jobs instead of spending time reading meters manually.

 

See article:

https://www.thesalemnewsonline.com/…/article_66da03b0…

 

March 10th, 2020

 

The late fee for billing was extended to March 25th. The city was in violation of their own ordinance, stating that citizens will have 20 days to pay their bill after receiving it. The rule was altered to allow more time for citizens to pay their utility bill.

 

Alderwomen Steelman and Hinderlighter expressed concerns regarding the verbiage of the ordinance, states that it could be up to interpretation, and in the future could provide the city the avenue to shorten the payment window, at the disadvantage of citizens.

 

Ray provides a list of average utility costs; however instead of publishing it, he says it’s available at the city office, therefore expecting citizens to get out and get it themselves. I find this very inappropriate, considering the plethora of media resources available in this day and age.

 

See article:

https://www.thesalemnewsonline.com/…/article_b5b1f1dc…

 

April 6th, 2020

 

Aldermen were told that utility bills would be sent at the conclusion of the week (see next article). They were also told that this bill would return to a 30 day billing cycle.

There were no bills issued at all in January 2020 and March 2020. Ray stated that the May 2020 bill would catch up these missing billing cycles.

 

Late fee penalties were finally suspended due to the onset of COVID-19. Before this point, the city had made no effort to burden the load that this billing fiasco had placed on citizens, despite requests from aldermen.

 

It was stated that shipping was late on about 250 water meters, although past statements gave the notion that all meters were already installed. This becomes a trend over this story, that the story flips between whether or not they’re all installed.

It was stated that the April bill would be for December 15th-January 15th.

 

See article:

https://www.thesalemnewsonline.com/…/article_9a51c9e4…

 

April 7th, 2020

 

This section should be viewed alongside the last section, as they were published on consecutive days and include contradicting information.

This article states that bills would be PROCESSED April 10th, which is quite different from the statement that they would be sent out by then in the last section. From what I’ve gathered, there is usually 1-2 weeks between processing and actually sending the bills. It was also noted that this bill would include 2 months of trash service instead of one.

A major issue for me is the billing period. The last article stated:

 

April 2020= Dec 15th- Jan 15th

 

This article claims:

 

February 2020= Nov 21st- Dec 21st

 

Regardless of these two statements being completely different, although published a day apart, my concern is the 6 days of overlap in December. If both of these articles are correct, citizens in Salem were charged twice for 6 cold winter days; which can make a large difference in utility costs.

It was also noted in this article that the utility lobby closed for COVID-19 precautions March 17th.

Customers voiced concerns that they may be billed for several months at a time; to which the city has the AUDACITY to publish a guide on how to conserve power. Instead of addressing citizens needs, they published a guide telling them to not use as much power if they’re worried.

See article:

https://www.thesalemnewsonline.com/…/article_a4fa005a…

 

April 24th, 2020

 

I have decided to not break down this article; instead, you should read it. It is a Q&A released by the city. Please remember to acknowledge the things we have addressed already in this post, and you will notice changing stories and tones. Please, read this article!

See article:

https://www.thesalemnewsonline.com/…/article_e43dfc9a…

 

April 24th, 2020

 

As a follow up in the same day as the last section, the city released their FIRST in-depth explanation to citizens. At this point, this debacle has been taking place for several months, and this is the first time we are seeing an overall statement. I won’t break down this article, again you should read for yourselves, however you will notice lots of placing the blame and backtracking past statements. This becomes a very common trend for the city.

See article:

https://www.thesalemnewsonline.com/article_27a85f10-8644…

 

May 12th, 2020

 

We begin seeing the city offer options on paying the outstanding balances caused by the meter delays. This article includes a breakdown of those options. This article also reiterates that these issues began in November of 2019. At this point in time, the city is behind 3 months in payments, at an average of around $700k per month.

Ray Walden again makes a bold statement that within a year, everything will be caught up.

See article:

https://www.thesalemnewsonline.com/…/article_e64f3e82…

May 26th, 2020

Alderwoman Kim Steelman confronts the city for a previous statement that utility bills would be sent in April, as they were not. Steelman expresses that she is upset because she is constantly lying to her constituents, due to the fact that the city keeps changing information after it’s already provided to the aldermen.

At this point, we see Walden essentially state that while he might be at fault, so is everyone else. Ray makes generalizations about communication at all levels, seemingly without the realization that it is quite literally his job to communicate correct and accurate information at all times. Ray does acknowledge his shortfalls in communication, yet seems to make no effort to change that moving forward. After a short speech blaming all levels of communication, Ray makes a promise that updates will become more regular. Moving on, that is certainly not the case.

Ray follows this with what he calls a “public commitment” to have May bills out by the end of last week. I have not found adequate documentation as to whether this promise was delivered on.

Ray continues on to blame the software for the current issues, again placing the blame on anyone except the city.

A situation is presented of a citizen who was away on vacation, and returned to a water bill stating over 27,000 gallons of water were used. Upon inspection, it was discovered that there was no leak, and this was in fact an error by one of the new meters. What appalls me is that there seemed to be almost a debate as to whether the city should still charge her for the 27k gallons, and an alderman argued that she should be given a break. Why is this a debate? Why should citizens have to pay to make up for software malfunctions?

See article:

https://www.thesalemnewsonline.com/…/article_597edbbc…

June 12th, 2020

The city had previously stated that bills would be sent on May 18th. At this point, halfway through June, 1,000 had, and 1,570 had not. The city cited Memorial day as the major contributing factor. I have 2 major issues with this.

1, Memorial Day wasn’t until a week after they stated the bills would be sent.

2, at this point, we are halfway through June and over half of the bills STILL have not been sent.

To further frustrate me, the city pledges to provide a 5% rebate to anyone who could pay their entire outstanding balance at once to help catch up. Essentially, the city gave a discount to those who are wealthy in Salem and would not be harmed by several thousands of dollars of utility bills at once, whilst leaving those who are not so fortunate (the majority of Salem) still clamouring to try and pay back outstanding bills caused by this major debacle that was out of their control.

The city states that they are currently facing a $2.1 million shortfall caused by the delay of payments after this billing fiasco.

See article:

https://www.thesalemnewsonline.com/…/article_ecf11372…

July 14th, 2020

The article blows my mind instantly. It states that MOST of the May bills had been sent at this point, halfway through July. These bills were promised on May 18th, and still had not been completely mailed out by July 14th. That is appalling.

Ray Walden states that the June bills would officially begin the electric reading process, and that those bills could be expected in late July or early August.

Walden goes on to apologize for long lines at the utility office, and major phone backup. He makes a promise that he will review issues personally if emailed to him. Alderwoman Steelman cites unreturned phone calls, and Walden states that they are working through a large backlog.

Walden states that 121 meters had to be replaced, and that this was the reason they were still behind. Things would return to normal once they were installed.

Ray Walden goes on to place blame on InCode (the meter software company) and says “the ball is in their court.”

Alderwoman Steelman says that some citizens are concerned about how low their utility bills are, and that these people are concerned that they are going to be slammed later on.

Walden makes the claim that he is personally reviewing utility bills for errors, and acknowledges that errors are present. He states that revised bills will be sent once these errors are realized. He then goes on to state that there will be no more catch up bills, and that all bills will stay on a monthly cycle here on out.

Alderwoman Steelman gets very real with the board, and cites the movie ‘Groundhog Day’. She says she feels like everytime they are there, they are made the same promises and told the same excuses, and then by the next meeting nothing is better and they are told all the same things again.

At this point, Walden seems to evade all blame and again places the blame on InCode.

Aldermen Steelman and James request that better customer service practices be put in place.

See article:

https://www.thesalemnewsonline.com/…/article_f065a8c6…

August 4th, 2020

This is an opinion piece by Donald Dodd. This article raises important questions and concerns about Salem’s utility system. Please read for yourself, as I believe this is better in its entirety than condensed and paraphrased.

See article:

https://www.thesalemnewsonline.com/…/article_fc6f4a56…

August 4th, 2020

The city begins this article by doing what I call “damage control.”

The city drops the electric rate another 3%, despite the over $2 million shortfall the city is facing at this point. It is also worth noting that this 3% drop in rate does nothing to help those who are far behind and are still paying the old rate. Essentially, the new rate only benefits those who were fortunate enough to afford to play the city’s catch up game for them.

A workshop was planned to address the billing issues. At this point, it is unclear whether this workshop was open to the public or just city officials.

See article:

https://www.thesalemnewsonline.com/…/article_65883648…

August 18th, 2020

This article includes my favorite piece of writing thus far about the city’s billing debacle. The IDA writes a letter to the city administrators and board of aldermen, expressing major concerns about city leadership. I truly recommend that you read this letter in its entirety, because the IDA spared no words in expressing their feelings about the city’s execution of this project, and they truly speak for all in Salem when calling out those in charge.

Instead of acknowledging their shortcomings, the city just reiterates excuses and places the blame on everyone except themselves again. I’m not going to break down this part, because it is truly just spewing the same information again that they use every time they are questioned.

It is brought up at this meeting that the utility office closed because the staff felt threatened by the public due to outrage over the billing debacle. It is stated that people can still call ahead and make arrangements. It is worth noting that this is a public government office, and there are major issues with closing it to the public. If your employees are concerned that they are in danger, you should be stepping double time to calm outrage and make sure your employees are safe. Instead of closing the office, why not address the problem at hand?

This article also discusses the loss of Salem R-80’s resource officer. It cites the city not providing documentation in time for the grant which provides the district with an on-campus police officer. The city’s irresponsibility cost Salem R-80 this safety, and if something were to happen and the officer not be available, I believe the city should be held responsible.

See article:

https://www.thesalemnewsonline.com/…/article_6d5351a4…

August 21st, 2020

We begin with being told that bills had gone out that Monday. Walden states that monthly billing will be the norm from now on. We have certainly heard that one before.

Tyler Tech, the parent company of InCode, says that they have repaired the issues, and that the program should be operating smoothly now. Ray Walden supports this claim, saying the system is reading accurately.

Catherine Dent poses the issue that some citizens have received no bills at all, and Walden places the blame on them. He says it is their responsibility to contact the city and let them know. This is interesting, as it is the city’s job to keep track of billing.

Former mayor Gary Brown, in a strange turn of events, places blame on the post office for late and missing bills. This is a very bold statement, considering the last year of irresponsibility from the city. I personally believe that this is just more pointing fingers.

See article:

https://www.thesalemnewsonline.com/…/article_f78db242…

August 25th, 2020

This article poses some concerning numbers. As for customers with utility account:

375 are 120 days past due

506 are 90 days past due

745 are 60 days past due

These numbers are appalling, and this is the first time we get an overall look at the effects that this billing fiasco has had on citizens. These numbers mean over half of Salem citizens have past due balances, some as far as 4 months. Luckily, this is during COVID-19, so the city was not disconnecting past due accounts. If that was the case, over half of Salem could potentially be without power.

Online billing was mentioned for the first time, which I think is more of a nightmare to put on top of a system that isn’t necessarily operating properly. I think at this point online billing should be the least of their worries.

$15k was granted to study the implementation of the new meters. Again, a matter of opinion, but I personally feel that that $15k would be better suited helping your 1,600 past due accounts who are suffering from your repeated mistakes. On top of this, it is mentioned that there are STILL meters that have yet to be installed, despite this project starting a year ago, and many comments making it seem like this had long been finished.

If you weren’t frustrated enough, the city had to put the cherry on top.

They CLOSED the utility office for renovation. In the middle of a pandemic, in the middle of multiple millions of dollars of shortfall, they closed the office that people are supposed to go to to address their utility issues. During this crisis that has befallen our town and its people caused by major lack of responsibility and communication skills, the city is HANDING OUT CONTRACTS FOR NEW CARPET.

Folks, you can’t make this shit up.

See article:

https://www.thesalemnewsonline.com/…/article_3dd09340…

September 15th, 2020

Despite the millions in shortfall over the electric billing issues, the city begins converting all city properties to LED bulbs, except City Hall Auditorium.

Walden announces that adjustments are being made to bills due to errors on a number of them.

See article:

https://www.thesalemnewsonline.com/…/article_a690e770…

October 6th, 2020

July 2020 bills were sent in September, while August bills are still being processed. Walden states that the October bill will be back to regular caught up billing, however this has been stated several times about several different bills.

The administrative office was temporarily closed with zero notice to the public at this time. When questioned why there was no notice, Walden is not documented with an answer. All employees were sent to either work from home, or a remote location. Meanwhile, people are still not able to get phone calls back when they have important questions. The third closure of this office in a year only furthers communication issues.

It was pointed out that citizens were having issues when paying with a check, and that those checks were not being processed.

Alderman James requested updated information on errors found in bills, and Ray Walden could not provide this information. He said he would locate that information at a later date.

Walden again reiterates that communication issues are on all levels, when I think at this point it is clear that the city is the root of the communication problems.

See article:

https://www.thesalemnewsonline.com/…/article_7e3b165a…

December 22nd, 2020

After relative silence about the utility issue from the city, despite major issues being voiced from citizens, the topic again came up in this article.

Again, Ray Walden claims that bills are almost caught up, despite saying it would be caught up by October in the last section. He also provides information that meters are still being installed, now over a year after the onset of this project. This again disputes several past statements that gave the impression that all meters had been installed for quite some time.

Ray Walden boasts that the monthly cycle is almost on track, although he has made this claim many times over the past year. In a strange turn, he then states that they may have to double up some bills to catch up. So which is it, are you almost caught up or not?

It becomes clear that over 200 meters are still not installed, despite being over a year into this project. No projection for the completion was provided.

See article:

https://www.thesalemnewsonline.com/…/article_24ea882c…

January 5th, 2021

It becomes apparent that the City of Salem has not provided financial records to The Salem News for 2 years, in violation of the Sunshine Law. 69 days after The Salem News requested these records, none had been provided, only excuses and ignored phone calls and emails.

It also is pointed out that employees are still working remotely, and this is used as an excuse for the records not being supplied.

The Salem News requested lots of city records, including TONS of Ray Walden’s records. It becomes apparent that Walden has been getting steady raises, and has not had an evaluation of his position in almost 6 years. They go on to specifically request a large collection of Walden’s records.

When they received a portion of these records, lots of information was incorrect. This gives me the impression that numbers had been fudged to cover missing money. That, however, is a matter of my opinion.

See article:

https://www.thesalemnewsonline.com/…/article_03a70f28…

February 16th, 2021

After multiple attempts, The Salem News has not received all of the city’s financial records. They file a Sunshine Law Complaint with the State of Missouri.

See article:

https://www.thesalemnewsonline.com/…/article_81812ab8…

February 2021 until now

It is announced that the City of Salem is under investigation; however, they were allowed to hire their own investigator to do so. How is this allowed? They can just hire their own investigator?

Mayor Brad Nash calls a series of closed meetings to discuss the Sunshine Law report, and after some time over 800+ documents are provided to the Salem News.

As a result of these closed meetings, longtime city clerk Mary Happel is suddenly terminated. Mary had worked for Salem since 1978. Happel is replaced with temporary clerk Tammy Koller. The city makes no statement as to why Mary was fired from her position. Citizens of Salem, myself included, see Mary as the scapegoat. I believe that the blame was placed on Mary so no one else had to take the falls for millions in missing money.

That being said, I believe there are many hands in that pot.

See articles:

https://www.thesalemnewsonline.com/…/article_6efa894e…

https://www.thesalemnewsonline.com/…/article_6efa894e…

https://www.thesalemnewsonline.com/…/article_d83c8526…

https://www.thesalemnewsonline.com/article_f6489a00-7b6d…

https://www.thesalemnewsonline.com/…/article_e6393080…

Mary’s termination is not the end. The lies and deceit from city officials has gone on long enough, and it is time to hold them accountable. The citizens of Salem should not have to suffer at the hands of the city’s mistakes. I fought long and hard for my community, and to see them treated like this is gut wrenching. It is time to stand up and tell the city that you have had enough.

If they have no issue terminating Mary Happel, then Ray Walden should take responsibility for the last year and a half of his contradicting statements, lies, and deception.

I am calling for the immediate resignation or removal of Ray Walden from his position as City Administrator. Enough is enough. It is time to step up and take responsibility for what you have done.

Please, call upon your Alderman to hold our city officials accountable. Share this post to ensure that your friends, family, and neighbors can read the lies and excuses in black and white.

Thank you to The Salem News for your dedication to keeping the public informed about the city’s corruption. These articles that I have laid out provide black and white proof of the corruption taking place in our city government.

Enough is enough. It’s been a year and a half, it’s time to do something about it.

Please share.

 

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